Need to Focus on Value Addition in Food Processing: Chirag Paswan

Union Minister emphasizes the importance of enhancing food processing sector

India, February 13, 2026, Friday, 2026

India, October 15, 2023, Sunday, 2023

Chirag Paswan, the Union Minister of State for Food Processing Industries, recently highlighted the critical need for value addition in the food processing sector. During a conference aimed at boosting the industry, he stressed that enhancing value addition can significantly impact farmers and the economy.

Importance of Value Addition

Value addition refers to the process of transforming raw agricultural products into more valuable goods. This transformation can take many forms, including packaging, processing, and branding. Paswan pointed out that India has a vast agricultural base, but much of it remains unprocessed. He argued that by focusing on value addition, the country can not only increase the income of farmers but also create jobs and stimulate economic growth.

The minister noted that the food processing sector has the potential to contribute significantly to the GDP. Currently, the sector accounts for about 10% of the country's GDP and employs millions. However, there is room for improvement. Paswan urged stakeholders to invest in technology and innovation to enhance productivity and efficiency in food processing.

Government Initiatives

The Indian government has launched several initiatives to promote the food processing industry. The Pradhan Mantri Kisan Sampada Yojana (PMKSY) is one such initiative. It aims to create a robust food processing ecosystem by providing financial assistance and support to entrepreneurs. Paswan emphasized that these initiatives are designed to encourage investment and foster growth in the sector.

Additionally, the government is working on improving infrastructure. Cold storage facilities, transportation networks, and processing units are essential for reducing wastage and ensuring that products reach consumers in good condition. Paswan mentioned that the government is committed to enhancing these facilities to support the food processing industry.

Challenges Facing the Sector

Despite the potential, the food processing sector faces several challenges. One major issue is the lack of adequate infrastructure. Many regions in India still lack proper cold storage and transportation facilities. This inadequacy leads to significant post-harvest losses. Paswan acknowledged this problem and called for a collaborative effort between the government and private sector to address these challenges.

Another challenge is the need for skilled labor. The food processing industry requires a workforce that is trained in modern techniques and technologies. Paswan urged educational institutions to develop programs that focus on food processing skills. By doing so, the industry can ensure a steady supply of skilled workers.

Sustainability in Food Processing

Sustainability is becoming increasingly important in food processing. Paswan emphasized that the industry must adopt sustainable practices to minimize its environmental impact. This includes reducing waste, conserving water, and using renewable energy sources. He encouraged companies to invest in sustainable technologies that can help them achieve these goals.

The minister also highlighted the importance of organic farming. Organic products are gaining popularity among consumers, both domestically and internationally. By promoting organic farming, India can tap into this growing market. Paswan stated that the government is keen to support farmers who wish to transition to organic practices.

Role of Technology

Technology plays a crucial role in enhancing value addition in food processing. Paswan pointed out that advancements in technology can lead to better processing methods, improved quality, and increased shelf life of products. He encouraged entrepreneurs to embrace innovation and invest in modern processing equipment.

Digitalization is another area where the food processing sector can benefit. By adopting digital tools, companies can streamline operations, manage supply chains more effectively, and reach consumers directly. Paswan noted that the government is promoting digital initiatives to help businesses in the food processing sector.

Collaboration with Industry Stakeholders

Collaboration between various stakeholders is essential for the growth of the food processing sector. Paswan called for partnerships between farmers, processors, and retailers. Such collaborations can lead to better understanding and alignment of interests. When all parties work together, they can create a more efficient supply chain that benefits everyone involved.

The minister also encouraged industry associations to play a proactive role. These organizations can provide valuable insights and support to their members. By sharing best practices and fostering innovation, industry associations can help elevate the food processing sector.

Consumer Awareness

Consumer awareness is vital for the success of the food processing industry. Paswan emphasized the need for educating consumers about the benefits of processed foods. Many consumers still prefer fresh produce over processed items due to misconceptions about quality and safety. By addressing these concerns, the industry can increase consumer confidence in processed foods.

Marketing and branding are also important aspects. Companies must invest in marketing strategies that highlight the quality and safety of their products. Paswan urged food processors to focus on building strong brands that resonate with consumers.

Future Outlook

The future of the food processing sector in India looks promising. With a growing population and increasing demand for processed foods, there is significant potential for growth. Paswan believes that by focusing on value addition, the sector can achieve its full potential.

The government remains committed to supporting the food processing industry through various initiatives and policies. By addressing challenges and promoting innovation, India can become a global leader in food processing.

In summary, Chirag Paswan's call for value addition in the food processing sector underscores the importance of this industry for India's economy. With the right investments, infrastructure, and collaboration, the food processing sector can thrive and contribute to the nation's growth.

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